The four tax lawyers I've spoken to on an "advice" basis seem to think this is a complicated situation that calls for a specialist. Unfortunately, I haven't found a specialist who I can afford. And the ones I
can afford have not been able to guarantee me that they can actually help me.
So, after a week of research, I'm asking HN in case anyone has been in a similar situation. Many thanks in advance.
The situation:
I'm a U.S.-based worker who has recently been hired on to a Canadian startup, and my hiring package includes stock options that vest over a four-year period. The exercise price on these options is set to the current fair market value. (That FMV is based, I imagine, on the valuation set by the pool of private investors -- this is not a publicly traded company).
My Questions:
(1) Do these options qualify for an 83(b) election? And if so, when do I file that? Some experts seem to say you don't file an 83(b) election on stock options until you exercise those options. Others seem to say that for options I should file for 83(b) election within 30 days of "grant date" (i.e. now).
(2) I'll assume the answer to the above is that I cannot file an 83(b) election until I exercise the options (e.g. at minimum one year from today). Does this mean that, at the time of vesting, if I think the value of the company will increase, I should exercise these options as soon as they vest (and file an 83(b))?
(3) Given that the FMV and strike price are equivalent at time of grant (now), do I need to do anything tax-wise this year? I imagine not, since there is not yet any inherent "value" to these options.
(4) Do I need to be aware of any double-taxation implication, since this is a Canadian-based company and I'm a U.S. worker?
(5) Is there anything else I'm overlooking here where I might curse myself down the road if I don't take action on?
So, after a week of research, I'm asking HN in case anyone has been in a similar situation. Many thanks in advance.
The situation:
I'm a U.S.-based worker who has recently been hired on to a Canadian startup, and my hiring package includes stock options that vest over a four-year period. The exercise price on these options is set to the current fair market value. (That FMV is based, I imagine, on the valuation set by the pool of private investors -- this is not a publicly traded company).
My Questions:
(1) Do these options qualify for an 83(b) election? And if so, when do I file that? Some experts seem to say you don't file an 83(b) election on stock options until you exercise those options. Others seem to say that for options I should file for 83(b) election within 30 days of "grant date" (i.e. now).
(2) I'll assume the answer to the above is that I cannot file an 83(b) election until I exercise the options (e.g. at minimum one year from today). Does this mean that, at the time of vesting, if I think the value of the company will increase, I should exercise these options as soon as they vest (and file an 83(b))?
(3) Given that the FMV and strike price are equivalent at time of grant (now), do I need to do anything tax-wise this year? I imagine not, since there is not yet any inherent "value" to these options.
(4) Do I need to be aware of any double-taxation implication, since this is a Canadian-based company and I'm a U.S. worker?
(5) Is there anything else I'm overlooking here where I might curse myself down the road if I don't take action on?